To put the cases behind it, JPMorgan might end up paying more than $11bn in fines and relief to homeowners, according to people briefed on the negotiations.

'There’s a lot of value to regulators and officials to show they’re really punishing people', Alan D. Schwartz, who was chief executive of Bear Stearns when JPMorgan took the firm over in 2008, said in an interview on CNBC on Friday. 'And I think it’s overdone', he added.

The portrayal of JPMorgan as the victim goes back to the days of the financial crisis, when the bank bought Bear Stearns and the remains of Washington Mutual, a large savings and loan that was crippled with mortgage problems.

Those two former institutions appear to have committed most of the missteps that are at the heart of the settlement talks. Yet JPMorgan, which largely sidestepped the subprime debacle, is being held to account for troubles not of its own doing.

Ian Bolland

A journalism graduate of Liverpool John Moores University. During his time at university, Ian spent time on work experience at local newspapers in Liverpool, Bolton and Wigan, and prior to that he did work for The Observer's 'fans verdict'. Ian also has interests in news, current affairs and business but mostly sport, including football, rugby league, cricket, golf and Formula 1, amongst others.